Transaction devices are portable items that store data, such as credit cards, debit cards, gift cards, access cards, and cards for various prepaid services or goods. Magnetically encoded transaction devices typically store data in a magnetic strip. “Smart cards” are transaction devices that store data in nonvolatile memory, and typically contain data processing circuitry that offers some degree of computing capacity.
A smart card may be a “proximity read” transit card, which may communicate with a card reader without physically contacting the card reader. Communication between a proximity read smart card and various types of card readers may occur via a radio frequency signal, optical signal, wireless internet connection, or other communication method known in the art or hereafter developed. As an owner or a user of a smart card passes through a fare gate, a card reader may cause value to be automatically deducted from value stored on the smart card.
A mobile device, such as a mobile phone, may include a smart card. Thus, if a card reader is present at a location where commercial transactions occur or where proximity read smart cards are used, the smart card in the mobile device may make payments, provide access to restricted areas, and perform other functions or transactions typically performed by smart cards. A mobile device may implement the functionality of multiple smart cards by containing a super-smart card, a smart card that emulates or enables multiple smart cards by containing multiple smart card applications. A smart card application is the software, hardware, or combination of both that provides the capability of a smart card. Multiple smart card applications on a smart card enable the smart card to emulate multiple smart cards. A smart card application provider may issue both a smart card application for a mobile device and a physical smart card. However, if the owner of a mobile device containing a smart card application loses the mobile device or has the mobile device stolen, whoever has the mobile device can use the smart card application to make unauthorized purchases or gain unauthorized access to restricted areas.